The Roots of the NSFAS Governance Turmoil

The National Student Financial Aid Scheme (NSFAS) stands as a cornerstone of South Africa's higher education landscape, providing crucial financial support to low-income students pursuing studies at public universities and Technical and Vocational Education and Training (TVET) colleges. Established under the NSFAS Act of 1999, it administers billions in bursaries annually, covering tuition, accommodation, living expenses, and books. In 2026 alone, NSFAS approved funding for over 1.24 million students, disbursing more than R6.3 billion in early payments to ensure a smooth academic start. This massive operation—handling a budget exceeding R50 billion—directly impacts access to higher education for hundreds of thousands from disadvantaged backgrounds, enabling enrolment at institutions like the University of Cape Town, University of Witwatersrand, and numerous TVET campuses nationwide.

However, NSFAS has been mired in controversy for years, from irregular expenditure and fraud allegations to payments made to deceased students—822 cases uncovered in a recent audit—and ghost accommodation beds leading to R1.7 billion in misallocations. These issues have eroded public trust and strained relations between the scheme's board, executive leadership, and the Department of Higher Education and Training (DHET). The latest flashpoint: a bitter dispute over the permanent CEO appointment, pitting Minister Buti Manamela against a fracturing board.

A Prolonged CEO Vacancy and Recruitment Struggles

The CEO position at NSFAS has remained vacant for 30 months, a period marked by leadership instability following the suspension and departure of previous executives amid probes into corruption. Acting CEO Waseem Carrim, a Chartered Accountant with prior roles as CFO at NSFAS and CEO of the National Youth Development Agency (NYDA), stepped in during March 2025. His tenure focused on stabilizing operations amid audits revealing deep systemic flaws.

The recruitment process kicked off in May 2025. Headhunters scoured the market three times—one firm was dismissed for slow progress—yielding candidates like Carrim, Busani Ngcaweni (former principal of the National School of Government and current Director at the University of Johannesburg's Centre for Public Policy), and Lindiwe Kwele. Shortlisting involved interviews, psychometric tests, and background checks. Aggregate scores slightly favored Ngcaweni, but psychometrics highlighted Carrim's superior strategic fit for managing a complex financial entity, deeming Ngcaweni more research-oriented.

• April 14, 2026: The Human Resources and Organisational Development (HROD) committee, chaired by Karabo Mohale, splits 4-1 in recommending Carrim, citing his financial expertise and continuity benefits.
• Committee dissent: Mohale pushes Ngcaweni for administrative prowess.

This internal rift set the stage for escalation, with board factions emerging.

Escalating Tensions: The April Showdown

Tensions boiled over in mid-April. On April 13, Minister Manamela reportedly convened a Johannesburg meeting with board members, where phones were allegedly confiscated, and he urged pausing the CEO process pending 'political consultations' at Luthuli House, ANC headquarters. Insiders claim this favored Ngcaweni, allegedly Manamela's pick.

Hours before a pivotal board meeting to ratify the CEO, acting chair Dr Mugwena Maluleke and Mohale resigned on April 27, citing personal and academic commitments. Board insiders viewed this as a quorum-blocking tactic to invite ministerial intervention. Undeterred, the remaining seven members—deemed quorate by legal opinion (majority present with three executives)—convened, appointing Carrim permanently on a R3.5 million salary band (up from R3.3 million).

Manamela fired back, notifying members the board lacked capacity for binding decisions under the NSFAS Act and Public Finance Management Act, signaling an administrator appointment. The board rebuffed, insisting statutory grounds for administration (maladministration or dysfunction) were absent.

Key Players in the Conflict

Buti Manamela, DHET Minister since July 2025, inherited a scandal-plagued NSFAS from predecessor Nobuhle Nkabane. His reforms include direct bank payments to students, bypassing exploitative intermediaries, and forensic probes into fraud. Critics like the DA accuse him of cadre deployment.

Waseem Carrim, frontrunner, brings proven turnaround experience from NYDA, where he secured clean audits. His appointment promises fiscal stability for NSFAS's R60 billion operations.

Busani Ngcaweni, academic with public policy expertise, entered late; psychometrics questioned his fit for high-stakes finance.

Resigned: Maluleke (interim chair, Cosatu leader) and Mohale (HROD chair), part of seven exits since 2025, per OUTA analysis.

Stakeholder Reactions and Broader Concerns

Parliament's Portfolio Committee on Higher Education demands explanations, flagging governance instability. The DA labels it a 'board collapse' reflecting systemic failure, urging Manamela's accountability. OUTA highlights misrepresented board compositions in official docs, risking compliance breaches, and calls for full resignation timelines and procurement transparency.

Student bodies like SASCO praise reforms but warn delays exacerbate dropout risks—1 in 5 NSFAS students fail annually, per reports. Universities and TVET colleges, hosting ~1.1 million and 527,000 students respectively, rely on timely NSFAS disbursements; disruptions could spike 2026 exclusions amid capacity shortages (235,000 uni spots vs. 656,000 matric passes).

• Positive: R4.2 billion pre-term payments to institutions.
• Challenges: 190,000 rejections, 20% failure rates eroding funds.

Manamela's Stabilisation Efforts Amid Chaos

Manamela's response includes board reviews, stakeholder consultations with Treasury and Parliament, and operational continuity guarantees. A DHET statement emphasizes procedural fairness via individual member engagements. Reforms target 'ghost beds', direct allowances, and SIU probes recovering misspent funds. For 2026, 416,688 continuing university students and 145,986 TVET met progression criteria, but 102,082 university and others failed, underscoring funding efficiency needs.

Read the DHET's official stabilisation outline for full ministerial plans.

Implications for South African Higher Education

This saga threatens 2026 academic year stability. Universities face funding delays risking blacklisting debt-ridden students; TVETs, vital for vocational skills, see enrolment surges but placement shortfalls. With NSFAS funding 80% first-years, leadership vacuums amplify dropout crises—national rates hit alarming highs, per studies.

Broader: erodes trust in public funding, pushes private higher ed growth like Stadio, strains uni finances (e.g., UCT housing woes). Positive shifts: AI tools, IBM partnerships via USAf boosting capacity.

Path Forward: Reforms and Resolutions

Manamela eyes board reconstitution or administration; Carrim's appointment awaits concurrence. Solutions include hybrid funding models, stricter progression rules, and tech for fraud detection. Stakeholders urge merit-based leadership, transparent procurement.

• Short-term: Mop-up payments, accommodation audits.
• Long-term: NSFAS Act amendments for agility.

For universities/TVETs, stable NSFAS means sustained access; failure risks 500,000+ eligible youth exclusions.

Photo by Brett Jordan on Unsplash

Lessons for Higher Education Governance

This conflict underscores needs for independent boards, rigorous vetting, and ministerial restraint. Balanced views—from DA critiques to union support—highlight reform urgency. Future: resilient NSFAS ensuring equitable access, vital for SA's knowledge economy.